Nexa Resources S.A. NEXA and Teck Resources Limited TECK are two prominent diversified base metals miners with significant zinc and copper production. Both NEXA and TECK are gaining from the surge in commodity prices.
For investors seeking to ride this momentum, the question is: which stock offers better value? Let us examine the fundamentals, growth prospects and challenges for Nexa Resources and Teck Resources.
The Case for NEXA
Based in Luxembourg City, Brazil, Nexa Resources is engaged in developing and operating mining and smelting assets primarily in Latin America. Nexa Resources is focused on optimizing its portfolio to concentrate its efforts on its core operations. In sync with this, the company completed the divestment of its Otavi and Namibia North project in late 2025.
Nexa Resources is prioritizing profitable assets, boosting free cash flow and sticking to its disciplined capital allocation strategy. The company continues to assess opportunities in its portfolio, with Namibia being a key region for expanding copper exploration beyond Latin America.
Nexa Resources’ adjusted EBITDA surged 126% year over year in the first quarter of 2026 to $283 million. The increase was driven by a constructive price environment, higher sales volumes in both segments and improving operating performance. An 18% year-over-year increase in zinc production, record quarterly production at the Aripuanã mine, and ongoing operational improvements at Brazilian smelters pushed first-quarter revenues to rise 42% year over year to $888 million.
In late May, the company announced that it is gradually resuming production at its Cajamarquilla smelter in Peru, which was temporarily suspended following a fire on May 13. Nexa Resources expects a production impact of 7,000 tons of refined zinc, indicating 2% of annual production due to the temporary production halt at Cajamarquilla. However, the company expects to recover the lost production in the second half of 2026.
Nexa Resources expects consolidated zinc production for 2026 to increase 6% from 2025. The company anticipates zinc production to grow 8% in 2027 from the 2026 reported level. The upside will be driven by higher production from Aripuanã, along with solid performances from the Atacocha and Vazante mines. However, consolidated copper production is expected to dip 17% in 2026 from the 2025 reported figure due to the planned mining of lower-grade zones.
Nonetheless, Nexa Resources is executing its long-term strategy to replace and expand its mineral reserves and resources. The efforts have already extended current life-of-mine plans across its portfolio, pushing Aripuanã’s life to 2041 and El Porvenir to 2036.
The company is executing Phase I of its Cerro Pasco Integration Project, which is an operational initiative to physically link El Porvenir and Atacocha underground mines. The integration will extend the life of mine at the Cerro Pasco Complex more than 15 years while boosting the operating cash flow.
The Case for TECK
Vancouver, Canada-based Teck Resources is committed to mining and mineral development with business units focused on copper and zinc. It is one of the world's largest producers of mined zinc, with three operating mines in the United States and Peru, and it owns one of the world's largest fully integrated zinc and lead smelting and refining facilities located in Canada.
As part of its long-term growth strategy, Teck Resources has entered a merger agreement with Anglo American plc to form the Anglo Teck group. It will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will consist of six world-class copper assets and premium iron ore and zinc operations with a combined annual copper production of 1.2 million tons. It is projected to grow 10% to 1.35 million tons by 2027. The combined company will also be one of the world's largest zinc producers. The deal is expected to yield $800 million in annual pre-tax synergies within four years of completion.
In the first quarter of 2026, Teck Resources’ adjusted EBITDA surged 92% year over year to CAD$2.09 billion ($1.52 billion), reflecting stronger realized pricing, higher volumes and increased by-product contribution. The Copper segment’s revenues surged 125% year over year, driven by higher copper prices and record sales volumes, while the zinc segment’s revenues rose 33%. This pushed the company’s top line to $2.87 billion, marking an 80% year-over-year rise.
However, the company’s zinc in concentrate production declined to 120 thousand tons in the first quarter of 2026 from 137 thousand tons a year earlier, reflecting lower grades at Red Dog in line with the mine plan. TECK expects zinc production to trend lower over the next three years as the mine approaches the end of its life. The 2026 zinc production guidance is 410-460 thousand tons, whereas it produced 565 thousand tons in 2025.
Nonetheless, the company maintains its 2026 copper production guidance of 455-530 thousand tons, whereas it produced 453.5 thousand tons in 2025. This will be driven by higher output at QB, Highland Valley Copper and Antamina. The long-term outlook for copper is positive as demand is expected to grow, partly driven by electric vehicles, renewable energy and infrastructure investments. Meanwhile, grade decline, rising input costs, water constraints and scarcity of high-quality future development opportunities continue to constrain the industry’s supply. This demand-supply imbalance will push copper prices north.
The company also continues to expand its copper pipeline by progressing key projects toward sanction readiness, including advancing permitting, securing land access and defining the business cases for Zafranal and San Nicolás.
Recently, TECK inked a Strategic Investment Agreement with Canada Growth Fund Inc. and Natural Resources Canada to boost the production of germanium, gallium and antimony at its Trail Operations smelting and refining complex in British Columbia. Per the deal, Canada Growth Fund will make an investment of up to $400 million in the Trail facility. This is part of Teck Resources' strategy of a $850-million investment to maintain and upgrade its critical minerals processing capacity at Trail Operations from a portfolio of feed sources.
How Do Estimates Compare for NEXA & TECK?
The Zacks Consensus Estimate for NEXA’s 2026 sales is $3.44 billion, indicating a 14.5% year-over-year jump. The consensus mark for the year’s earnings is pegged at $2.70 per share, suggesting a year-over-year upsurge of 217%. The Zacks Consensus Estimate for 2027 earnings indicates a rise of 0.7%. The estimates for 2026 and 2027 have been trending north over the past 60 days.
The Zacks Consensus Estimate for TECK’s 2026 sales is $10.54 billion, indicating a 34.2% year-over-year jump. The consensus mark for the year’s earnings is pegged at $3.54 per share, suggesting a year-over-year upsurge of 60.1%. The Zacks Consensus Estimate for 2027 earnings suggests a fall of 15.7%. The estimates for 2026 and 2027 have been trending north over the past 60 days.
NEXA & TECK: Price Performance & Valuation Comparisons
In the past six months, the TECK stock has gained 4.2%, while NEXA has lost 6.2%.
NEXA is currently trading at a forward 12-month earnings multiple of 4.49X, lower than its five-year median. TECK is currently trading at a forward 12-month earnings multiple of 17.77X, lower than its five-year median.
NEXA or TECK: Which Is the Better Pick?
NEXA is poised to benefit from record production at its Aripuanã mine, along with its portfolio optimization strategies and solid metal prices. The company’s ongoing exploration and investment strategies will aid growth. However, NEXA’s near-term copper production is expected to dip due to planned mining of lower-grade zones.
Teck Resources is also benefiting from a strong price environment and project pipeline expansion. The company’s long-term growth looks promising with the planned merger agreement with Anglo American plc to form the Anglo Teck group. The combined annual copper production of 1.2 million tons is projected to grow 10% to 1.35 million tons by 2027. Even though near-term zinc in concentrate production at Red Dog has been impacted by operational issues, it will be offset by long-life assets and growth projects.
Given these factors, TECK seems a better pick for investors than NEXA currently despite a higher valuation. TECK carries a Zacks Rank #2 (Buy) at present, which further supports our thesis. NEXA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).